The Implications of the Ukrainian Crisis on Trade Relationships Between the Eu and Russia

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Implications of the Ukrainian Crisis for Trade Relationships of the EU with Russia

Economic Policies of the European Union

Gartnar Marko | 19486522 | Marmai Martina | 19131311 | Mladenović Kosta | 19821606 |

Executive Summary

The aim of this research assignment is to provide an assessment of the effects on trade relationships between the EU and Russia stemming from the so-called “Ukrainian crisis.” The term points at the Russian military intervention in Ukraine, and the public response that this event generated. In particular, the analysis will regard the repercussions on Euro-Russian trade due to the Council’s diplomatic reply to the violent annexation of the Crimean peninsula by the Russian Federation.
Since March 16th, when - with the unconditional support of Russia - the referendum for the independence of Crimea took place, the events in Ukraine escalated, giving rise to a number of restrictive provisions which, increasing in scope and gravity, aimed on one side to discourage military intervention by Russia, while on the other punished illegal misappropriation of Ukrainian public property.
Such sanctions may not have played an important role, were it not for the current shaky state of the Russian economy. Nevertheless, that of sanctions is a two-sided sword, and the European Union, barely stepping on the road to recovery, can’t exactly afford being too picky when it comes to deciding who to do business with.
The high level of interconnectedness and dependence on each other’s economy seem to drive these two players into a situation of stalemate: hurting the other without hurting themselves appears to be almost impossible, as both have lots to lose from a bilateral trade reduction. To conclude, things may take a decisive turn only if one of the participants were to somehow succeed in neutering the effect of the other’s sanctions, hence…...

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